What's the best election outcome for investors? It's usually one in which no single party controls both legislative chambers and the presidency. While some votes are still being counted, a divided government appears likely. Unsurprisingly, the stock market has jumped after Election Day.
Investors looking for stocks to buy right now have plenty of promising alternatives. If you've got $3,000, these three stocks are great picks to buy now that the elections are over.
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1. Brookfield Renewable
The demand for renewable power will increase no matter which candidate wins the presidential race and which political party controls Congress. That's great for Brookfield Renewable (BEP -1.66%) (BEPC -0.89%), which ranks as one of the best renewable energy stocks on the market.
Brookfield Renewable expects to deliver average annual returns of between 12% and 15% over the long term. Is that level of growth really achievable? I think so.
First, Brookfield Renewable has generated an even higher total annualized return of 18% over the last 20 years. More importantly, multiple factors will work in the company's favor going forward. Renewable energy sources such as wind and solar are more cost-effective than fossil-fuel alternatives now. Countries, major U.S. states, and large corporations also have established ambitious carbon-reduction goals that can only be met with more renewable energy.
Over the last five years, around $2 trillion has been invested in renewable energy, according to Bloomberg New Energy Finance. Over the next decade, the total investment could be as much as five times that amount. Brookfield Renewable is a smart way to ride the wave of renewable energy, in my view.
2. GrowGeneration
There's a pretty good argument to be made that cannabis was the biggest winner on Election Day this week. Four states voted to legalize recreational marijuana, while two states voted to legalize medical marijuana. The significant wins for the cannabis industry bode well for GrowGeneration (GRWG -6.38%).
GrowGeneration isn't a cannabis producer itself, meaning that its shares can trade on a major U.S. stock exchange without any issues. The company operates the largest U.S. chain of retail hydroponics and organic gardening stores that primarily serve the cannabis industry.
Don't worry that GrowGeneration won't be able to keep its momentum going just because its shares have already skyrocketed more than 400% higher this year. The company has plenty of room to grow, especially with more states on track to launch recreational pot markets.
Also, there's a lot of opportunity for consolidation in the highly fragmented hydroponics retail market. GrowGeneration currently operates 31 stores in 11 states, more than any other company. There are around 1,000 stores in the U.S. GrowGeneration is already moving toward consolidation, though, with the company announcing earlier this week that it's acquiring The GrowBiz, the third-largest chain of hydroponic garden centers in the U.S.
3. The Trade Desk
With election season winding down, Americans can return to what has become a national pastime -- binge-streaming TV shows. Of course, most Americans never took a break from streaming TV in the first place. One of the best stocks to profit from the rise in streaming TV and other forms of connected TV (CTV) is The Trade Desk (TTD -0.54%), which operates the leading software platform for advertisers to buy digital ads.
Wall Street analysts are practically tripping over themselves to raise their target prices for The Trade Desk. While analysts don't always make the right calls, I suspect they're being smart in this case.
The COVID-19 pandemic caused some advertisers to pull back on their marketing budgets earlier this year. Signs in recent months have pointed to a solid rebound. That's great news for The Trade Desk.
Even better, though, is that the pandemic appears to be accelerating the overall rise of CTV. The Trade Desk is well-positioned to grow as this trend continues. If one or more of the top streaming providers eventually offer a lower-cost option that's ad-supported (which isn't a far-fetched scenario), this stock would almost certainly skyrocket.
